3M (NYSE: MMM) today posted mixed Q3 results and cut its guidance amid a strong dollar and uncertain economic environment.
Meanwhile, CEO Mike Roman said in a news release that the company has started the work to successfully spin out its Health Care business.
Maplewood, Minnesota–based 3M earned $3.9 billion, or $6.77 per share, off $8.6 billion in revenue for the quarter ended Sept. 30, 2022, roughly doubling the bottom line amid a top-line cut of 4%. If not for the continued decline in disposable respirator sales as people seek to lead post-COVID lives, 3M would have had 3% organic sales growth.
Adjusted to exclude one-time items, 3M’s EPS was $2.69, 9¢ ahead of The Street, where analysts were predicting EPS of $2.60 on sales of $8.7 billion.
“We continue to position 3M for the future through investments for growth, productivity and sustainability, along with active portfolio management,” Roman said.
The Health Care business had EBITDA of $603 million on sales of $2.076 billion during Q3, down from EBITDA of $668 million on sales of $2.173 billion during the same quarter a year ago.
3M now expects a 3.5–3% decline in sales this year, versus a previous projection of a 2.5–0.5% sales decline. The company expects 2022 adjusted EPS between $10.10–10.35, down from its prior guidance of $10.30–10.80.
MMM shares were down slightly to $117.76 apiece in morning trading. MassDevice‘s MedTech 100 Index, which includes stocks of the world’s largest medical device companies, was up more than 2%.